Q50. Which is a typical example of revenue expenditure?
[RRB Group D, 20 September 2022, Shift 1]
(A) Making a loan to another country
(B) Constructing a government hospital
(C) Repaying the principal of a government loan
(D) Paying government employees’ salaries
Answer: (D) Paying government employees’ salaries
Explanation: Employee salaries finance ongoing government operations and are ordinarily revenue expenditure. Construction of public buildings generates assets, while loan advances acquire assets and principal repayments reduce liabilities. Those alternatives generally fall within capital expenditure rather than the revenue account.
Q49. Which of the following are included in the Indian Union Budget?
I. Revised estimates for the current year.
II. Budget estimates for the following year.
III. Actuals for the preceding year.
[WBCS Mains 2021, Paper V (held May 2022)]
(A) I only
(B) II only
(C) III only
(D) All three
Answer: (D) All three
Explanation: Union Budget documents commonly provide previous-year actuals, current-year revised figures and next-year estimates. Comparing them helps legislators examine forecasting, implementation and proposed allocation changes. Consequently all three types of financial information are presented rather than estimates for only one year.
Q48. Which Article of the Constitution provides for the Finance Commission?
[WBCS Mains 2021, Paper V (held May 2022)]
(A) Article 245
(B) Article 260
(C) Article 290
(D) Article 280
Answer: (D) Article 280
Explanation: Article 280 creates the national Finance Commission and prescribes the periodicity of appointment. The body advises on distribution of tax proceeds and principles of grants-in-aid. The other Articles deal with different constitutional matters and do not establish this Commission.
Q47. Which is an indirect tax in India?
[SSC CGL 2021 Tier I, 11 April 2022, Shift 1]
(A) Goods and Services Tax
(B) Corporation tax
(C) Income tax
(D) Capital-gains tax
Answer: (A) Goods and Services Tax
Explanation: GST applies to taxable supplies of goods and services, with the tax burden generally passed on to consumers. Corporation tax, personal income tax and capital-gains tax fall directly on the income or gains of the assessee, making them direct taxes.
Q46. Which method of financing a budget deficit is likely to be most inflationary?
[UPSC CSE Prelims 2021]
(A) Repayment of government debt
(B) Borrowing from the public
(C) Borrowing from commercial banks
(D) Creating new money
Answer: (D) Creating new money
Explanation: Monetisation of a deficit adds new purchasing power to the economy. If production cannot respond proportionately, excess aggregate demand may raise prices. Borrowing ordinarily redirects pre-existing savings rather than necessarily expanding the monetary base to the same extent.
Q45. Why is black money a major concern for government public finances?
[UPSC CSE Prelims 2021]
(A) Its use in luxury real estate
(B) Its use in gemstones
(C) Its influence on donations
(D) Loss of tax receipts through evasion
Answer: (D) Loss of tax receipts through evasion
Explanation: Black money often represents income or assets concealed from tax authorities, undermining the public exchequer. Real estate purchases and other uses may follow, but the central fiscal damage is lost legitimate revenue and the inequity imposed on compliant taxpayers.
Q44. Which constitutional amendment enabled the introduction of the GST regime in India?
[UPPSC PCS Prelims, 24 October 2021]
(A) 101st Amendment
(B) 102nd Amendment
(C) 103rd Amendment
(D) 104th Amendment
Answer: (A) 101st Amendment
Explanation: The Constitution (One Hundred and First Amendment) Act, 2016 established the constitutional framework for GST, including Article 279A on the GST Council. Nationwide GST implementation followed in July 2017, replacing several central and state indirect taxes on most supplies.
Q43. Who serves as the Chairperson of the GST Council?
[UPPSC GIC Lecturer Economics 2021]
(A) Prime Minister
(B) Union Finance Minister
(C) Vice-Chairperson of NITI Aayog
(D) Vice-President of India
Answer: (B) Union Finance Minister
Explanation: Under Article 279A the Union Finance Minister chairs the GST Council. Its membership includes the Union Minister of State responsible for finance or revenue and designated State ministers. This mechanism allows Centre and States to deliberate over shared indirect-tax policy.
Q42. Who chaired the Fifteenth Finance Commission?
[UPPSC GIC Lecturer Economics 2021]
(A) N. K. Singh
(B) S. S. Mundra
(C) Cyrus Mistry
(D) Soumya Kanti Ghosh
Answer: (A) N. K. Singh
Explanation: N. K. Singh chaired the Fifteenth Finance Commission, which made recommendations on tax devolution and fiscal transfers for the relevant award period. This constitutional body is distinct from the GST Council and from the Planning Commission’s historical fiscal allocation role.
Q41. Which statement about constitutional subject lists is incorrect?
[CDS-II General Knowledge, 14 November 2021]
(A) Tax on agricultural income belongs to the State List
(B) Price control is in the Concurrent List
(C) Insurance is not a Union List subject
(D) Forests are in the Concurrent List
Answer: (C) Insurance is not a Union List subject
Explanation: Insurance falls within the Union List, so saying it is excluded from that list is incorrect. Taxes on agricultural income are assigned to States, while price control and forests are Concurrent List subjects. These allocations determine legislative competence and influence fiscal powers.
